#Sweden #financial results #Stockholm #Neonode #Technology Licensing

Neonode's Financial Results for 2024

On March 21, 2025, Neonode Inc. (NASDAQ: NEON) published its financial performance review for the fiscal year concluding December 31, 2024. This marks a significant transition year for the company, especially as it pivots away from manufacturing its Touch Sensor Modules (TSM) and focuses on technology licensing, primarily its innovative platforms MultiSensing® and zForce®.

Key Financial Highlights

For the fiscal year of 2024, Neonode reported:

• - Revenues from continuing operations: $3.1 million, representing an 18.8% decline relative to the preceding year.
• - Operating expenses: $9.5 million, witnessing a modest decrease of 0.2% from 2023.
• - Loss from continuing operations: Amounting to $5.9 million or $0.37 per share, in contrast to a loss of $5.1 million or $0.33 per share for the prior year.
• - Cash used in operations: Totaled $5.6 million, down from $6.3 million in 2023.
• - As of December 31, 2024, cash and accounts receivable stood at $17.2 million, indicating an increase from $16.8 million year-over-year.

CEO's Insights

Fredrik Nihlén, acting President and CEO, commented on the fundamental changes undertaken last year. He remarked, “2024 marked a pivotal year for Neonode as we ceased our TSM production to focus entirely on technology licensing. Our technology platforms, especially the MultiSensing® and zForce®, attracted substantial customer interest in 2024.” He indicated that this interest resulted in significant non-recurring engineering (NRE) fees, which are anticipated to evolve into licensing revenues as these projects transition into production phases.

Despite a retreat in revenues linked to legacy products—particularly in the printer and car touch segments—Nihlén expressed confidence in the company's reformed strategy. He highlighted a critical award received from a leading commercial vehicle original equipment manufacturer for the supply of MultiSensing driver monitoring system software. This reflects the company's emphasis on innovative applications in automotive safety and touch display technologies.

Detailed Financial Overview

The revenues of $2.7 million from licensing represented a 29.3% decrease compared to 2023, largely due to dwindling demand for legacy customer products. However, Neonode experienced remarkable growth in their revenues from non-recurring engineering, amounting to $0.4 million, which exhibited an astounding increase of 1,519.2% compared to the previous year. This surge was primarily driven by the driver monitoring project initiated with the commercial vehicle OEM late in 2023, coupled with the new collaboration with NEXTY Electronics concerning advancements in licensable TSM technology.

Operational expenses remained relatively stable at $9.5 million, highlighting Neonode's commitment to managing costs while navigating through this transitional phase. The notable decrease in cash used in operations reflects a strategic reduction in component purchases due to the halted manufacturing of TSM.

The financial position of Neonode as of year-end showed promising resilience with a working capital of $16.1 million, aligning closely with the previous year's figures. This solid financial foundation empowers Neonode to explore and secure additional licensing opportunities as it advances innovative technologies in its field.

Conclusion

As Neonode transitions from legacy operations to a technology licensing framework, it stands ready to capitalize on new growth avenues in automotive and beyond. The reported results for 2024 emphasize both the challenges and strategic pivots essential for its future growth, showcasing a company committed to innovation even amidst operational shifts.